Have you lost track of your retirement savings?
Research conducted by ABI last year highlighted that 1.6 million pension pots worth £19.4 billion are unclaimed. Although these statistics are pretty shocking, they may not come as a total surprise. Our lives have changed and for the majority, the days of working for one employer and then retiring is very much a thing of the past and it is therefore not unusual for people to have more than one pension pot.
It is thought that multiple job changes coupled with multiple house moves has contributed to these statistics, with people simply losing track of pensions paperwork or forgetting to update their pension provider with their new contact details.
The 31st October 2021 marks the UKs first National Pension Tracing Day. The day coincides with the clocks going back and encourages people to utilise the extra hour to search for pensions they might not know exist.
It is really important to look for any lost pensions as this will help to provide a fuller picture of what your retirement might look like and help you to plan accordingly. And it’s not as difficult as you might think to trace lost pensions.
Looking back through any old paperwork may be a good place to start. Alternatively, you could use the Government’s pension tracing service: https://www.gov.uk/find-pension-contact-details. The online service takes you through a series of questions that should help you identify any lost pensions you might have. It is also possible to contact the service by telephone on 0800 731 0193.
If you discover a single, or multiple lost pensions, you should seek advice to understand your options. For example, you may wish to consolidate your pensions, but there are pros and cons to this and no universal right answer, so seeking advice on your own situation is important.
If you would like to talk to someone about your retirement planning, please get in touch.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The value of your investment (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available.
Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances. Levels, bases of and reliefs from taxation may change in subsequent Finance Acts.
Information correct as of 27/10/21